Moraga drew down its Measure K reserves to pour $4.9 million into its pavement program during fiscal year 2024-25, nearly double the $2.67 million the one-cent sales tax actually collected, according to a draft audit report headed to the town's oversight committee Monday.
The Local Sales Tax Oversight Committee will formally review the findings at 5 p.m. Monday, Aug. 10, in Council Chambers at 335 Rheem Blvd. The committee's conclusion: every dollar it examined went to the Pavement Management Program, not to general fund services or other town operations.
Where the money went
The biggest chunk was $4.14 million in Measure K funds transferred to the 2023-24 Street Rehabilitation Project. Combined with gas tax, Measure J and garbage vehicle impact fees, that single project cost $6.75 million total.
Another $530,472 covered annual debt service on the town's 2013 Certificates of Participation, a bond-like instrument used for earlier infrastructure work. The town also paid $139,286 in resident reimbursements under its Street Rehabilitation Cost Sharing Policy, approved by the Town Council as part of the 2022 paving project. An additional $113,685 went toward planning and design for the next phase of road work.
Measure K funds accounted for 65% of all road spending listed in the town's pavement program for the year.
The fund is shrinking
The Measure K fund started the fiscal year on July 1, 2024, with $2.76 million and ended June 30, 2025, at $1.06 million. The draft audit report notes that remaining balance does not represent idle money. It is restricted revenue carried forward to cover projects already underway, planned future phases and timing gaps between collections and expenditures.
The committee sampled $4.26 million of the $4.93 million in total spending — 86% of expenses — including all construction and staff costs. Debt service and cost-sharing reimbursements were not selected for review.
What's next on the ground
The next phase of paving is already underway. The Town Council approved a contract with Bay Cities Paving and Grading on May 27, and according to the town's project page, construction began in July on Augusta Drive, Rheem Boulevard, Moraga Road and Canyon Road from St. Mary's Road to Country Club Drive. That work is expected to wrap up in fall 2026.
Committee business
At a May 18 meeting, the committee voted 3-0 to appoint Spencer Schilling as vice chair. Schilling and fellow member Dirk Sodestrom were named to a two-person subcommittee tasked with reviewing the audit and presenting it to the Town Council. The five-member panel is chaired by Scott Parker.
Moraga voters approved Measure K in November 2012. The oversight committee is set to sunset in 2033.
Monday's meeting is open to the public. Crews, meanwhile, are expected to finish the current round of paving on Augusta Drive, Rheem Boulevard, Moraga Road and Canyon Road by fall.
